The Frontiers Of Trading

by: Ivan Cavric Trading can be a challenging and complex endeavor, and even the most experienced traders can make mistakes. Here are seven of the biggest mistakes traders make, and how you can avoid making them: Not having a trading plan: One of the most common mistakes traders make is not having a clear trading plan. A trading plan should include your goals, risk management strategy, and a detailed plan for how you will enter and exit trades. Without a trading plan, you are more likely to make impulsive decisions and be swayed by emotions. Not managing risk: Risk management is an essential part of trading, but many traders ignore it. Without a proper risk management strategy in place, you are more likely to suffer significant losses. It's important to have a plan in place for when things go wrong and to have a stop-loss in place to limit your losses. Over-leveraging: Leverage can be a powerful tool, but it can also be dangerous if not used correctly. Over-leveraging your trades...

By:  Ivan Cavric Don't throw your money down the drain! Do a checklist of the 7 Things you really must know before start investing. 1. Know your current financial situation. Know you debts level. Calculate your income and expenses by taking into account the following: Mortgage repayments Personal tax  Loans and overdrafts  Living expenses  Emergency funds  Car expenses  Entertainment  Holidays  School fees  Credit card debts  Family commitments  Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rainy days. 10% is a small amount that you won't feel a pinch. Save it until you have managed to build a "dam management funds". 2. Prepare fund...

  By:  Ivan Cavric According to most marketing campaigns, Forex trading should be a breeze and you should quickly acquire a small fortune in no time at all. Unfortunately, reality does not support this viewpoint and indicates that a far more scientific and structured approach is essential in order to achieve consistent success. In fact, most professionals would advise you similarly in that you need to adjust your thinking about Forex trading so you can elevate it to the same levels used by experts.  To achieve success at Forex, you fundamentally need to complete a sequence of consecutive successful Forex trades as often as possible. What does that really mean and is it difficult? Let us try and answer these questions by considering the following analysis. For each trade you open, consider that you will need to target an achievable profit of 50 pips that may require you to trade, on average, for about 4 hours. In addition, you will then need to obtain a consecutive sequenc...

  By:  Ivan Cavric      As already stated, you will need to be able to use leverage in order to acquire worthwhile profits. However, you must proceed with caution because the poor utilization of leverage could expose your account balance to excessive levels of risk. For instance, some Forex Brokers offer leverage as high as 400:1. Although this sounds impressive and very desirable, you must appreciate how to exploit such a facility accurately before trying to use it in full earnest. Here are some important features about leverage that you must be fully aware of: Always remember that using larger levels of leverage also increases your risks significantly. It is important to monitor your account balance regularly and utilize stop-loss orders on all your open positions in order to restrict your risk exposure. Although using stops is good practice, you must still understand that you will increase your risk exposure significantly if you start leveraging in a reckless...

  By:  Ivan Cavric If you do not master the concepts of money management quickly, then you will discover that margin calls will be one of your biggest problems trading. You will find that these distressful events must be avoided as a top priority because they can completely wipe out your account balance. Margin calls occur when price advances so far against your open trading positions that you no longer have sufficient funds left to support your open positions. Such events usually follow after traders begin to over-trade by utilizing too much leverage. Should you experience such catastrophes, then you will have to endure the pain involved in completely re-building your account balance back from scratch. You will find that this is a distressful experience because, after such events, it is normal to    feel totally demoralized. This is the exact situation that many novices end up in time and time again. They scan charts and then think that by doing so they can make qua...

  By:  Ivan Cavric Many novice traders have gambling mentalities which they have acquired from other pursuits such as horse racing. They mistakenly believe that they can transfer their winning strategies from those activities easily across to trading. Some even think that trading should be easier because it does not comprise uncertainties such as a horse breaking its leg or falling ill.          If you identify with this mindset then you must get rid of it as quickly as possible otherwise you will suffer severe financial losses trading. This is because although trading may appear to be a simple two-way bet from initial perceptions, it is in fact a very complex entity. You can gain an understanding of this feature if you realize that the financial markets have an astonishing daily turnover. The question you need to ask is what on this planet is capable of generating such a massive amount of money. The answer is the combined trading actions performed by ...